Connect with us

Philippines

Philippines plummets in to recession as virus numbers spike

Jack Burton

Published 

 on 

Philippines plummets in to recession as virus numbers spike | The Thaiger
PHOTO: Reuters
  • follow us in feedly

The Philippines, reeling from Covid-19lockdowns that have destroyed businesses and thrown millions out of work, plunged into recession after its biggest quarterly contraction on record, data showed today. The Philippine Statistics Authority says GDP 16.5% year-on-year in the second quarter as the country endured one of the world’s longest stay-at-home orders to slow the spread of the virus that’s devastated economies globally. It follows a revised 0.7% contraction in the first three months of the year and marks the biggest drop in economic activity since records began in 1981 during the Ferdinand Marcos dictatorship. It’s the country’s first recession in 3 decades.

The outlook for the archipelago is bleak, with the number of coronavirus infections surging past 115,000 this week – a more than fivefold increase since early June when economy-crippling restrictions were eased. The Philippines is expected to exceed Indonesia in the next few days, to become the country with the highest number of cases in Southeast Asia. According to acting Socioeconomic Planning Secretary Karl Chua:

“Without doubt, the pandemic and its adverse effect on the economy are testing the economy like never before. But unlike past crises, the Philippines is now in a much stronger position to address the crisis.”

Philippines plummets in to recession as virus numbers spike | News by The Thaiger

As health workers struggle to cope with the inundation of patients, more than 27 million people in Manila and 4 surrounding provinces on the main island of Luzon, which accounts for more than 2 thirds of the country’s GDP, went back into a partial lockdown for 2 weeks on Tuesday to ease the strain on hospitals. But President Rodrigo Duterte, who was reluctant to tighten restrictions after millions became jobless in the first shutdown, warns the country can’t afford to stay closed for much longer:

“The problem is we don’t have money anymore. I cannot give food anymore and money to people,”

The Philippines’ economic woes have been amplified by a drop in remittances from the legions of Filipinos working abroad, who typically send money to their families every month, which fuels consumer spending – the main driver of growth. Remittances fell 6.4% in the first 5 months compared with the same period last year, according to the central bank, as thousands of seafarers, cleaners and construction workers lost their jobs and returned home. Consumer spending in the second quarter plummeted 15.5%, the statistics agency said.

It will be a rough road to recovery as trade-offs between economic recovery and health will remain a big challenge to both the private and public sectors.”

SOURCE: Bangkok Post | Nikkei Aian Review

Keep in contact with The Thaiger by following our Facebook page.
Never miss out on future posts by following The Thaiger.
2 Comments

2 Comments

  1. Avatar

    Rinky Stingpiece

    August 6, 2020 at 11:32 pm

    This thing really is the ultimate stress test for the global economy, and it really exposes the dependencies of some economies. Many economies have been getting by as sort of parasitically feeding off the more developed economies that tend to innovate and produce things. Many countries in the developing world are still relying on exporting primary resources, and letting the large numbers of unskilled labour get by on very dependent subsistence occupations. It seems very clear how badly these economies are in need of skilling up and training in productive industries.

  2. Avatar

    Mark

    August 7, 2020 at 2:00 am

    Countries are now sanctioning China for what has happened in the world by freezings Chinese assets for compensation do you think the ASEAN alliance will do the same to cover the billions of losses to jobs

Leave a Reply

Your email address will not be published. Required fields are marked *



Find more SE Asian News courtesy of The Thaiger.

Broke? Find employment in Southeast Asia with JobCute Thailand. Rich? Invest in real estate across Asia with FazWaz Property Group. Even book medical procedures worldwide with MyMediTravel, all powered by DB Ventures.

Jack Burton is an American writer, broadcaster, linguist and journalist who has lived in Asia since 1987. A native of the state of Georgia, he attended the The University of Georgia's Henry Grady School of Journalism, which hands out journalism's prestigious Peabody Awards. His works have appeared in The China Post, The South China Morning Post, The International Herald Tribune and many magazines throughout Asia and the world. He is fluent in Mandarin and has appeared on television and radio for decades in Taiwan, Mainland China, Hong Kong and Macau.

Top 10

Top 10 things that have changed in Thailand during the Covid-era

The Thaiger

Published

on

Top 10 things that have changed in Thailand during the Covid-era | The Thaiger

Things have changed. In some cases they’ve changed a lot and may never be the same again. Many people are suffering as a result of the impacts of lockdowns and the border closures. Entire industries, like aviation and entertainment, have been profoundly affected. Some people are being forced to re-invent their lives as a result. Fears over Covid-19 are causing people to change their habits and re-evaluate their lives. Here are some of the main things we believe have changed since January this year.

Face Masks

The now ever-present face mask will be with us for a long time. In Asia, it was never uncommon to see people wearing face masks for traffic, air pollution, fears of disease or just as a fashion statement.

In the Covid-era, mask wearing will now just become part of what we wear when in public spaces. When we leave home we’ll check if we have our keys, our wallet AND our face mask. Even when the government relaxes the current laws about the wearing of face masks, most people, we predict, will continue to wear them anyway, at least in the medium to long term.

Taking Your Temperature

It’s everywhere, it doesn’t appear to be very effective or reliable, but it’s not uncommon to have your temperature taken by someone pointing an infra-red thermometer at your head numerous times a day. The only people that appear to have benefitted from these temperature checks are the manufacturers of infra-red temperature check machines. But in the Covid-era they remain an ever-present reassurance that at least businesses are trying and want to be seen as contributing to the broader public health safety.

Flying in the Covid-era

While the domestic carriers are all flying again, they’re doing it tough. Planes are sometimes half-empty and there’s certainly less choice of times and destinations, compared to before the Covid travel restrictions set in.

But it hasn’t stopped the budget airlines from making the situation extremely competitive with the fares still very low. The aviation industry will certainly re-emerge with fewer airlines as some will be unable to weather the Covid storm. Even the Thai government’s announcement of soft-loans to airlines, with 2% interest, will do little to help and simply kicks the bankruptcy can down the road a few more months.

Confidence

Many business had to close during the lockdown. Some have re-opened. Others tried to re-open but have since closed again. Some are struggling along as best they can, tweaking their business models to cope. But people, through fear or simply being unable to afford it, are going out less and spending less. People are rediscovering the values of close communities, family or the joys of Netflix and at-home entertainment.

The impacts of recessions across the region will have long-lasting, profound effects on consumer confidence and behaviour. People’s renewed confidence will lag behind any eventual economic recoveries.

Eating Out

There’s been few clear winners in all this Covid mess. But delivery companies are one of them and the local motorcycle delivery services in particular. Grab Food and Food Panda are just two examples of the new way we eat and many restaurants are changing their table service model, and even their take away services, to suit the new normal of food-on-demand. Some restaurants have even closed their doors forever and turned into virtual restaurants, delivering food exclusively through the convenience of app ordering and delivery.

Even as the situation has eased to a large degree in Thailand where a lot of daily living is back to ‘normal’, people simply aren’t going out as much, have pivoted to the delivery services for some shopping and eating, and finding new ways of running their lives, closer to home and with less household outlay.

The Travel Industry

Apart from the obvious lack of international tourism, there’s no doubt we’re simply going to be travelling less in the short to medium term. Many people will be unable to afford the long holidays of the pastand may travel less, or not at all. For business we’ve found efficient ways to keep in contact without meeting face to face. Had anyone ever heard of “zoom’ video conferencing software before Covid?

For the communities that relied on tourism, the changes in their situation has been profound. Businesses are having to reinvent their model to cater for domestic tourism or simply find other ways to diversify their business plan, or just wait out the situation. That wait will eventually kill off a large chunk of local and foreign businesses.

The Economy

Thailand is in recession. So is everywhere else, and the situation, sadly, is likely to get worse as the Covid-era stretches out beyond 2020 and restrictions hold back investment. Some previously good businesses are now out of business. Businesses that were struggling before have been proven unsustainable and closed, probably never to re-open.

Globally, the government stimulus poured into local economies has caused artificial spikes in some stock markets. All this debt will need to be repaid at some stage. In other countries, where the government paid salaries for companies that were forced to close up or sack staff, are finding it hard to ween people off the grants and get them back to work.

In Thailand the economy has been hit hard, particularly in the export , tourism and hospitality industries. The downstream effects of all the staff losing their work, will have an effect on the local economy for many years.

Thailand, reliant on international tourism, has found itself exposed once the borders were closed. As the situation extends way past the ‘few months’ people were expecting, the full impact is starting to hit hard, particularly in places like Pattaya, Phuket and Chiang Mai. Their reliance on tourism has exposed their economies and left thousands wondering what else they can do to sustain themselves.

Whilst Thailand has recovered quickly from past political unrest, tsunamis and past pandemic threats, this time there will be a much longer path to recovery and will force many businesses to re-evaluate their businesses.

Work from home

Both Thailand’s commercial property market and businesses that have previously had centralised offices, have seen a big shift in behaviour. Driven by the need to work from home during the lockdown in April and May, many businesses magically discovered that they can actually function perfectly well with their employees working from home. The flow-on effects of all this is reducing traffic on the roads, lighter peak traffic loads, flexible hours and, of course, larger businesses wondering why they’ve been renting all this expensive commercial building space. Freelance work is a boom industry as company’s work forces move online instead of in-office.

The red light industries

The reality has certainly hit home for tens of thousands of Thailand’s sex workers. Although not officially recognised in Thailand, prostitution has been a huge local underground (and not-so-underground) industry in the past, creating its own micro-economy involving locals and international tourists.

Without official government acknowledgment, the jobs of Thai sex workers are not recognised and their salaries vanish once the bars and borders close. No rights, no unemployment pay. The number of prostitutes in Thailand is upwards of 100,000, and these workers have had to head home, many back to the northern and northeast provinces. Thailand’s red light districts were locked down for almost 3 months and bars and clubs, and the bar girls and boys, have been struggling ever since.

The pause button

There are few people that have not been profoundly affected by the impact of the coronavirus. Whilst some have been confronted directly with health issues, and even the deaths caused by Covid-19, of friends or relatives, others have had to put their lives and businesses on hold.

People have been unable to travel, business doors have been closed, many people have lost their job and thousands of events have had to be cancelled or postponed.

Even though many parts of the economy are being to grind back into action, there will be a lingering hang-over for just about everyone as they re-orient their lives to suit the new situation. In some cases, the pause button may have to be hit again, as the world continues to battle Covid-19, and find new ways to live with it.

Keep in contact with The Thaiger by following our Facebook page.
Never miss out on future posts by following The Thaiger.
Continue Reading

Coronavirus (Covid-19)

Thailand seals its 2,000 kilometre border with Myanmar

The Thaiger

Published

on

Thailand seals its 2,000 kilometre border with Myanmar | The Thaiger

Thailand’s Department of Disease Control remains on alert, and patrols increased along the Thai/Myanmar border, as Thailand’s western neighbour continues to register a spike in new Covid 19 cases – between 430 and 670 people each day, over the past 4 days. The DDC director-general Suwannachai Wattanayingcharoenchai told Bangkok Post that Thai “business operators should stop hiring foreign workers, especially Myanmar people, to help prevent a second wave of Covid-19 infections in Thailand.”

Myanmar’s number of confirmed cases has now reached 7,177 with 129 Burmese succumbing to the virus at this stage. Yesterday the four national papers suspended circulation, waiting out the sudden surge of cases.

Thailand seals its 2,000 kilometre border with Myanmar | News by The Thaiger

Further west, in Bangladesh, the country is registering 1,600 – 1,800 new cases per day, but falling, and India, which is still registering 75,000 – 97,000 cases per day (over the past week), is likely to surpass the US total in the next few months if the present case trends continue.

The fluid borders in the region continue to worry Thai officials who are scrambling to better secure the long border between Thailand and Myanmar, which runs from Chiang Rai in the north to Ranong in the south. Even Malaysia, to the south of Thailand, has had a recent spike of new cases, some of the outbreaks in the northern Malay state of Kedah which shares Thailand’s southernmost border.

Myanmar’s largest city, Yangon, is now in a deep lockdown, including directing people to stay home, except for emergencies or to buy food, most schools around the city are now closed and residents are not allowed to visit neighbour’s homes and 2 people outside is considered a ‘gathering’.

Meanwhile the border checkpoints have become busy where Burmese are trying to cross into Thailand as fears sweep their country about the rise of the cases. The DDC chief says that “tough legal action will be implemented against those found to be involved in human smuggling gangs”.

Yesterday a Burmese teenager, living near the Thai-Myanmar border tested positive for Covid-19. The 17 year old boy tested positive for Covid-19 last week in Myanmar’s Payatongsu district, about 5 kilometres from the Three Pagodas Pass checkpoint bordering Kanchanaburi. The Pass, and the border zones around it, are a fluid mix of Thai and Burmese locals doing day-to-day trade. The teen started having symptoms on September 11 and tested positive a week later.

In another case, a 2 year old Burmese child tested positive for Covid-19 after leaving Thailand. A report from Thailand’s Ministry of Public Health Disease Control Department says the child most likely contracted the virus while travelling from Thailand to Myanmar around September 4 to September 10. The family travelled to Mae Sot and entered Myanmar through natural passageways. 2,635 people in Mae Sot tested negative for Covid-19.

In some border districts, police have placed barbed wire along the leaky jungle border to deter people from crossing the 2,000 kilometre-long border illegally. Security has increased and dozens of migrants have been arrested in the past month for trying to cross into Thailand illegally. Even volunteers have stepped up to patrol the borders. No migrants arrested for allegedly crossing the border have tested positive for the virus at this stage.

SOURCES: Bangkok Post | Reuters | Chiang Rai Times

Keep in contact with The Thaiger by following our Facebook page.
Never miss out on future posts by following The Thaiger.
Continue Reading

Coronavirus (Covid-19)

Teen near the Thai-Myanmar border tests positive for Covid-19

Caitlin Ashworth

Published

on

Teen near the Thai-Myanmar border tests positive for Covid-19 | The Thaiger
PHOTO: Thairath

A Burmese teenager who lives near the Thai-Myanmar border tested positive for Covid-19. Now, Thai border patrol officers are tightening security even more to make sure Myanmar’s outbreak doesn’t cross the border and cause a second wave in Thailand.

The 17 year old Burmese boy tested positive for Covid-19 last week. Reports say the teen was in Myanmar’s Payatongsu district, about 5 kilometres from the Three Pagodas Pass checkpoint bordering Kanchanaburi. The teen started having symptoms on September 11 and tested positive on September 17.

Only around 13 people were reportedly in close contact with the teen and they are now in quarantine at a district school. Health officials suspect the teen was exposed to the virus from his uncle who had travelled to Moulmein, a large city near Yangon which had a spike in coronavirus cases. The uncle has been tested and is in quarantine, but his test results are still pending.

In another case, a 2 year old Burmese child tested positive for Covid-19 after leaving Thailand. A report from Thailand’s Ministry of Public Health Disease Control Department says the child most likely contracted the virus while travelling from Thailand to Myanmar around September 4 to September 10. The family travelled to Mae Sot and entered Myanmar through natural passageways. 2,635 people in Mae Sot tested negative for Covid-19.

Since Myanmar reported a surge in cases, starting mostly in the country’s Rakhine state on the western coast, Thailand has been increasing border patrol to make sure people are not entering Thailand illegally and potentially spreading the virus. Now that there are cases in some Myanmar border towns, Thailand checkpoints are on high alert.

The daily number of Covid-19 cases in Myanmar continues to rise. The country reported a total of 6,471 cases with 100 deaths and 1,445 recoveries, according to Worldometer.

In some border districts, police have placed barbed wire along the border to prevent people from entering illegally. Security has increased and dozens of migrants have been arrested in the past month for allegedly entering Thailand illegally. Even volunteers have stepped up to patrol the borders. No migrants arrested for allegedly crossing the border have tested positive for the virus.

Daily new Covid-19 cases in Myanmar

Teen near the Thai-Myanmar border tests positive for Covid-19 | News by The Thaiger

The daily number of Covid-19 cases in Myanmar continues to rise. As of September 22, the country reported 6,471 cases with 100 deaths and 1,445 recoveries, according to Worldometer.

SOURCE: Bangkok Post

Keep in contact with The Thaiger by following our Facebook page.
Never miss out on future posts by following The Thaiger.
Continue Reading
Follow The Thaiger by email:

Trending